‘Heads on Spikes’: Fury Erupts Over Superannuation Scandal as Aussie Retirees Lose Life Savings
- Thousands of Australian retirees face financial ruin after investing in collapsed superannuation funds First Guardian and Shield Master Fund
- Senator Andrew Bragg calls for harsher penalties, including ‘heads on spikes’, to deter superannuation mismanagement
- Investors who lost money in the scandal may be eligible for compensation through the Compensation Scheme of Last Resort, but payouts are capped at $150,000
Lisa Rogers, a 63-year-old retiree, is one of the many Australians who have lost their life savings in the superannuation scandal. She had invested $42,000 in Shield Master Fund and $20,000 in First Guardian, hoping to retire within two years. However, her dreams have been shattered, and she is now facing an uncertain financial future.
“I think ASIC (the Australian Securities and Investments Commission) has to be more on to it,” Rogers said. “There were people reporting, up to several years back, that there were problems with these companies, and they didn’t act on the advice they received.”
The corporate watchdog, ASIC, has been under fire for not taking action sooner to protect investors. Senator Andrew Bragg has called for harsher penalties, including ‘heads on spikes’, to deter superannuation mismanagement. “We need to make sure that those who are responsible for this scandal are held accountable,” he said.
The collapses of First Guardian and Shield Master Fund have exposed deep flaws in the regulation of Australia’s $4.3 trillion superannuation sector. The scandal has left thousands of investors facing financial ruin, with some losing their entire life savings.
Paul Chiodo, a director of Shield, had warned ASIC about potential problems with the management of First Guardian as early as January 2021. However, the corporate watchdog did not take action until February 2024, when it blocked investment into Shield and froze the assets of First Guardian in February 2025.
Investors who lost money in the scandal may be eligible for compensation through the Compensation Scheme of Last Resort, but payouts are capped at $150,000. The scheme is funded by an industry levy on financial advisers, which has more than doubled over the past financial year.
Sarah Abood, CEO of the Financial Advice Association Australia, has called for the financial advice sector’s contribution to be capped at $20 million annually, and for the government to cover the excess cost from a broader range of sectors. “If there are failures that need to be compensated that go above that [cap], who pays that?” she asked.